FINANCIAL TOOLS

AFFORDABLE HOUSING
PERFORMANCE GRANT

FINANCIAL TOOLS

AFFORDABLE
HOUSING
PERFORMANCE
GRANT

Rendering of 7000 Carnation

A collaborative partnership between the City and the EDA, the Affordable Housing Performance Grant Program incentives the development of safe and affordable multi-family housing in Richmond.

OVERVIEW

The Economic Development Authority of the City of Richmond, Virginia (EDA) offers Affordable Housing Performance Grants in collaboration with the City of Richmond to further the development of affordable housing on a continuous basis throughout the year. The program is designed to induce the private development of new, affordable multifamily units by providing annual grants to offset a development’s incremental real estate tax burden for an initial 15-year period, with the potential for an additional 15 years of benefit.

Performance grant applications will be accepted, reviewed, and evaluated by the EDA and the City’s Department of Housing and Community Development (HCD) staff. Based on the evaluation, staff recommendations are provided to the EDA Board of Directors and Richmond City Council for consideration and formal approval through their respective legislative processes. The outcome of the evaluation and approval process is not guaranteed.

BACKGROUND

To combat the affordable housing shortage, to further economic development, and specifically to incentivize the development of affordable housing across the Commonwealth, the General Assembly passed HB 1194 during the 2022 Session, and it became effective on July 1, 2022. HB1194 amended Ch. 49, Title 15.2 of the Code of Virginia, known as the “Industrial Development and Revenue Bond Act,” to allow local Economic Development Authorities, in conjunction with their local governing bodies, the power to make grants associated with the construction of affordable housing.

In response to the housing crisis declared by Mayor Stoney and the City Council through Resolution No. 2023-R019 adopted on April 10, 2023, the EDA and HCD worked collaboratively to create the Affordable Housing Performance Grant Program to incentivize the development of safe and affordable rental housing in the City.

PROGRAM AND SUBMISSION GUIDELINES

Please download, read, and carefully review all information contained in this Application Packet, including the associated attachments, before completing the application. Applications must be submitted at least 70 days before an anticipated response is required. Incomplete applications will not be evaluated or considered for decisions until all required information have been provided.

Download the Application Package